http://www.reuters.com/article/idUSGEE5B90E720091210
* May return to external borrowings in H2 2010
(Adds quotes, details)
MOSCOW, Dec 10 (Reuters) - Sberbank (SBER03.MM), Russia's biggest lender, will continue buying high-quality Eurozone sovereign securities to diversify its securities portfolio, a senior official at the bank told reporters on Thursday.
State-controlled Sberbank, whose securities portfolio grew by 42.6 percent to 704.1 billion roubles in January-September 2009, acquired sovereign securities of Eurozone countries for the first time in October.
"We buy only top-quality securities of developed countries. So far, these securities are with a maturity of up to three years," said Bella Zlatkis, Sberbank's first deputy chief executive. "We are able to buy securities with a longer maturity."
Sberbank expects 25 percent gains on its securities portfolio in 2009, Zlatkis said. "It was a successful year."
The bank's corporate bonds portfolio increased by 175.9 percent in the first nine months of 2009, while the proportion of OFZ state bonds in the securities portfolio decreased to 34.5 percent from 53.5 percent, the bank said in a report.
Sberbank so far has no plans to return to the external debt market in the first half of 2010, but would consider doing so in the second half of next year, Zlatkis said. (Reporting by Oksana Kobzeva; writing by Dmitry Sergeyev; editing by Karen Foster)
Reuters: Sberbank sees 25 pct gains on securities portfolio
http://www.reuters.com/article/idUSGEE5B909I20091210
ST PETERSBURG, Dec 10 (Reuters) - Sberbank (SBER03.MM), Russia's biggest lender, expects 25 percent gains on its securities portfolio in 2009, the bank's first deputy chief executive officer told reporters on Thursday.
"It was a successful year," Bella Zlatkis said.
Sberbank's securities portfolio grew by 42.6 percent in volume in the first nine months of 2009, reaching 704.1 billion roubles ($22.9 billion), the bank said in a report for January-September 2009.
In the same period, its corporate bonds portfolio increased by 175.9 percent while the proportion of OFZ state bonds in the securities portfolio decreased to 34.5 percent from 53.5 percent. (Reporting by Yelena Fabrichnaya, writing by Dmitry Sergeyev)
http://www.lse.co.uk/FinanceNews.asp?shareprice=&ArticleCode=c1vaw6usgyrej6d&ArticleHeadline=Russias_ProfMedia_plans_IPO_to_repay_debtpaper
Thu, 10th Dec 2009 06:21
MOSCOW, Dec 10 (Reuters) - Prof-Media, controlled by Russian industrial magnate Vladimir Potanin, plans to float up to 40 percent of its stock in an initial public offering in April 2010 to help service debts, a Russian newspaper reported on Thursday.
Vedomosti business daily, citing unnamed banking sources, reported the media firm had selected Merrill Lynch and Credit Suisse as underwriters for the proposed IPO in London, which could value Prof-Media at between $2.0 billion and $2.5 billion.
The newspaper quoted Prof-Media President Rafael Akopov saying the company had long been preparing for an IPO. He did not confirm any other details of the planned listing.
The listing could potentially raise between $800 million and $1 billion for the company's owners, Vedomosti said, which could help them to repay part of a $3 billion-plus debt to state-controlled bank VTB.
Prof-Media, which last year posted $639.4 million in revenues and $171.2 million in earnings before interest, taxation, depreciation and amortization (EBIDTA), is majority owner of Russian Internet company Rambler media Ltd.
(robin.paxton@reuters.com; +7 495 775 1242; Reuters Messaging: robin.paxton.reuters.com@reuters.net)
The Moscow Times: Rosatom Expects $17Bln in Revenues
http://www.themoscowtimes.com/business/article/rosatom-expects-17bln-in-revenues/391194.html
10 December 2009
The Moscow Times
State nuclear firm Rosatom expects revenues of 518 billion rubles ($17 billion) this year as it plans to return to “serial” nuclear plant construction, it said Wednesday.
“This is 37 percent more than in last year. This is our goal,” Rosatom chief Sergei Kiriyenko said. “It’s extremely important for us that we’ve reached this output volume not at the expense of safety, but as it is improving.”
He said starting next year, the company would be building at least one new nuclear plant each year.
“It’s Busher in Iran next year. We’re practically at a final stage setting up the equipment. Then Kudankulam in India. In 2011, it’s the Kalininsky nuclear unit … and the second unit of Kudankulam. And every year like that,” he said.
India handed Rosatom a contract earlier this week to build four more reactors for its nuclear power station in Kudankulam, in southern India.
Bloomberg: Renaissance Expands Into Belarus Before State Asset Sales Start
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=alCPq.s0fXQk
By Jason Corcoran
Dec. 10 (Bloomberg) -- Renaissance Capital, the Russian investment bank half-owned by billionaire Mikhail Prokhorov, opened an office in Minsk today as Belarus prepares to sell assets to comply with the terms of an emergency IMF loan.
“We are currently looking at a number of mergers and acquisitions opportunities, at Belarusian companies looking to tap into the international capital markets as well as the potential impact of future privatizations,” said Peter Vanhecke, head of Moscow-based RenCap’s investment banking business in Ukraine and central and eastern Europe.
Belarus was forced to borrow $2.23 billion from the International Monetary Fund this year to meet spending commitments after export revenue tumbled. The former Soviet republic has been run by Aleksandr Lukashenko, once a collective farm boss, since 1994.
RenCap said its Minsk office is the first in Belarus of a “major investment bank.” Galt & Taggart Securities, a unit of Tbilisi-based Bank of Georgia, opened an office last year to organize funding for Belarusian companies.
“We are the first international investment bank to have operations on the ground in Belarus and we feel that this puts us in a strong position to become the advisor of choice for both local public and private entities as well a foreign investors,” Vanhecke said.
To contact the reporter on this story: Jason Corcoran Moscow at +7-or Jcorcoran13@bloomberg.net
Last Updated: December 10, 2009 03:14 EST
Bloomberg: Magnit November Sales Rise 19% to $470 Million on Store Openings
By Maria Ermakova
Dec. 10 (Bloomberg) -- OAO Magnit, Russia’s second-biggest food retailer, said sales advanced 19 percent in November from the same month last year to 14.3 billion rubles ($470 million) as it opened more stores.
Magnit opened 56 stores last month, pushing the total to 3,098, the Krasnodar, southern Russia-based company said in an e- mailed statement today.
To contact the reporter on this story: Maria Ermakova in Moscow at mermakova@bloomberg.net
Last Updated: December 10, 2009 00:30 EST
BNE: State could take stake in Avtovaz
http://www.businessneweurope.eu/dispatch_text10715
bne
December 10, 2009
The state could become a shareholder in stricken car maker Avtovaz as a result of a supplementary share issue, a highly placed source at the state corporotion Russian Technologies (Rostekhnologii) told Interfax December 9.
"The state could receive a stake during the share issue. This will come about if funds are injected directly and not via a contribution to Russian Technologies' share capital," the source said, as quoted by Interfax.
The share issue will dilute the stake owned by investment bank Troika Dialog and other minorities shareholders.
State corporation Russian Technologies will participate with budgeted funds. Global carmaking giant Renault-Nissan will make an overall EUR 240 contribution in the form of equipment from Renault and EUR 60m cash from Nissan. It is thought that the French company will not reduce its current stake 25% stake, according to Interfax.
Renault, Troika Dialog and Russian Technologies each own 25% plus one share in Avtovaz.
The Interfax source said the interest-free loan of R25bn Russian Technologies provided to Avtovaz in the spring 2009 will be converted into a long-term interest-free loan. Avtovaz is also set to receive R50bn rubles in state support, including R38bn to restructure debt and R12bn for working capital. A first tranche of R12bn could be released by end 2009 in the form of a contribution to the share capital of Russian Technologies, Industry and Trade Minister Viktor Khristenko told Interfax on December 8. Funds will no longer be provided as interest-free loans.
Activity in the Oil and Gas sector (including regulatory) Upstreamonline: Kentz snares Sakhalin deal
http://www.upstreamonline.com/live/article201156.ece
Irish engineering group Kentz is primed to start a $25 million shutdown services and operations support contract for ExxonMobil offshoot Exxon Neftegas at the Sakhalin 1 development project in Far East Russia.
Upstream staff Thursday, 10 December, 2009, 08:36 GMT
The shutdown is scheduled to take place during the third quarter of next year, the company said.
The Sakhalin-1 project is an oil and gas development on the north-east shelf of Sakhalin Island. Exxon Neftegas Ltd is the operator of the project.
Published: 10 December 2009 | Last updated: 10 December 2009
10.12.2009
Oil and Gas Eurasia: Sevmash, Doris Engineering Join Forces
http://www.oilandgaseurasia.com/news/p/0/news/6258
The northwest Russian shipyard and engineering plant Sevmash will establish a joint venture with the French-based Doris Engineering.
An agreement on the establishment of the new company will be signed on 17 December, a press release from Sevmash informs. The signing ceremony will be held as part of Sevmash’ 70-year anniversary celebration.
It is expected that the new company will be engaged in operations in the Shtokman project. Doris Engineering is one of the companies which is to provide engineering design to the Shtokman Development AG.
Copyirght 2009. Barentsobserver.com. All rights reserved.
Bloomberg: E.ON Unit to Import Less Russian Gas This Year, Die Welt Says
http://www.bloomberg.com/apps/news?pid=20601100&sid=aLXSFXGAWOVc
By Patrick Donahue
Dec. 9 (Bloomberg) -- E.ON AG’s Ruhrgas unit will import less gas from Russia this year than is stipulated in long-term contracts because of falling energy prices, Die Welt newspaper reported, citing unit head Bernhard Reutersberg.
The energy supplier’s gas imports from Russia won’t meet the minimum contractual level because spot-market prices are lower and Russian imports make less economic sense, the newspaper cited Reutersberg as saying.
The company will have to pay an unspecified sum to Russian state gas company Gazprom OAO, Die Welt said.
To contact the reporter on this story: Patrick Donahue in Berlin at at pdonahue1@bloomberg.net.
Last Updated: December 9, 2009 14:37 EST
Bloomberg: LUKoil Drills for Saudi Gas
http://www.themoscowtimes.com/business/article/lukoil-drills-for-saudi-gas/391208.html
10 December 2009
LUKoil said it has started appraisal drilling at a Saudi Arabian gas field after reporting several dry wells last year.
The Tukhman structure in Block A has commercial natural-gas and condensate reserves in place, said a company official who declined to be identified in line with corporate policy. LUKoil will wait for the drilling results before disclosing the data.
(Bloomberg)
Alfa: ESPO tariff proposed at $52/ton, tariffs in other directions are set to rise by 20%
http://www.businessneweurope.eu/dispatch_text10715
Alfa
December 10, 2009
Yesterday the Federal Tariff Service (FTS) published its proposed crude transportation tariff on shipments through the ESPO. The proposal puts the total cost of shipment of crude from Taishet to the port of Nakhodka at RUB1,600 ($52) per ton. The final decision will be made on December 18. This is higher than the previously publicized range of $42-45/ton but way below the $130 level needed (according to Transneft) to make the ESPO a commercially viable project. The difference will be compensated by increases in transportation tariffs on shipments in other directions, which could rise as much as 20% in ruble terms in 2010.
This is NEGATIVE for the whole Russian oil industry. Even East Siberian producers will be subsidizing their eastern shipments at the expense of western routes. Rather than the government absorbing the cost of this project, the cost is being spread, negatively affecting the economics of oil production in mature areas.
Chirvani Abdoullaev
The Journal of Turkish Weekly: "Friendship Pipeline" Boosts Cooperation with Neighbors: Kazakh Manager
http://www.turkishweekly.net/news/93695/-quot-friendship-pipeline-quot-boosts-cooperation-with-neighbors-kazakh-manager.html
Thursday, 10 December 2009
The Central Asian gas pipeline, which will go into operation next year, will boost cooperation with Kazakhstan's neighbors and bring benefits to all in the region, the general manager of the Chinese-Kazakh joint venture Asian Gas Pipeline says.
In a recent interview with Chinese media, Beimbet Shayakhmetov said the construction of Line A of the dual pipeline has already been completed and ready for operation, while Line B is expected to begin to deliver gas in April or May next year, Xinhua reported.
The construction of the pipeline, which runs from the border between Turkmenistan and Uzbekistan, passing through Uzbekistan and Kazakhstan before reaching China, began in 2007.
Shayakhmetov said the 1,833-km pipeline is currently the longest gas pipeline in the world, with Turkmenistan, Uzbekistan, Kazakhstan and China directly involved in the project and Russia, Germany, Britain and the United States participating to varying extents.
The project has drawn a lot of international attention and the entry into operation has great significance, said the general manager.
The project has created large numbers of jobs in Kazakhstan and the country will also benefit by collecting gas transit fees, he said, adding that gas needs in Almaty region will be met after Phase II of the project is completed.
The pipeline has opened a new gateway for energy exports for both Turkmenistan and Uzbekistan, with the latter also benefiting from receiving large amounts of transit fees.
"In fact, most important of all, through this project, we and our neighbors have found more common interests and opportunities for cooperation between us," Shayakhmetov said.
Energy cooperation between Kazakhstan and China has reached a high level and bilateral cooperation in other areas has also been fruitful, Shayakhmetov said.
The two countries share a long border and China's powerful economy has an important impact on Kazakhstan's economic development, he said.
"During the Soviet era, Russia built a "friendship" natural gas pipeline leading to Europe. But in comparison, this Central Asian gas pipeline fully deserves the title of a "friendship pipeline," as it can well rival that pipeline in its immediate significance," he said.
Thursday, 10 December 2009
Barentsobserver: Oil pipe explosion on Yamal
http://www.barentsobserver.com/oil-pipe-explosion-on-yamal.4663627-116321.html
2009-12-09
Oil spill covered 100 square meters of land after an explosion in an oil-gathering line in the Yamalo-Nenets Okrug last week.
According to the local Emergency Management Service, the accident was probably caused by metal fatigue, Uralinform.ru writes. A fire broke out, but was reported to have been put out quickly. No people were harmed in the accident and there was no danger of fire spreading.
The pipe belongs to the company Rosneft-Purneftegaz.
Gazprom
http://www.upi.com/Science_News/Resource-Wars/2009/12/09/Gazprom-hosts-CNPC-for-gas-talks/UPI-48251260374604/
Published: Dec. 9, 2009 at 11:03 AM
MOSCOW, Dec. 9 (UPI) -- Officials from the China National Petroleum Corp. arrived in Moscow to discuss securing natural gas supplies from Russian energy giant Gazprom.
Alexander Ananenkov, deputy chairman of Gazprom's management committee, met with CNPC Vice President Wang Dongjin to discuss the terms of an October agreement setting the conditions for Russian gas supplies to China.
Both companies in October signed a framework agreement on the terms and conditions for gas supplies. Gazprom and CNPC signed a strategic cooperation agreement in 2004 on a variety of joint ventures related to Russian gas deliveries.
Deliveries of Russian gas would travel through a western corridor to China, Gazprom said.
The parties to the Moscow negotiations added terms were discussed to develop joint gas processing and gas chemical projects in eastern Russia and in other countries.
Reuters: E.ON Ruhrgas may buy less Russian gas this year
http://uk.reuters.com/article/idUKGEE5B90D020091210
Thu Dec 10, 2009 9:13am GMT
FRANKFURT, Dec 10 (Reuters) - E.ON's gas unit E.ON Ruhrgas (EONGn.DE: Quote, Profile, Research) may curb 2009 receipts of Russian gas under long term contracts due to a demand slump and defer purchases, its chief executive Bernhard Reutersberg said in an interview on Thursday.
"It could be that at the end of the year we will take a little less gas than is contractually agreed," he said in the daily paper Die Welt.
"If we don't take the minimum volume, we will have to pay for parts of the volumes and can take them later," he added.
European gas supply is plentiful and cheaper as industrial demand has plummeted in the financial crisis.
At the same time, competitive spot gas markets are springing up under liberalisation efforts, which have created lower prices to rival those available under long term delivery contracts.
Reutersberg said that it made no economic sense to over-import gas from its main partner, Russia's Gazprom (GAZP.MM: Quote, Profile, Research), and sell it in the spot markets, where it would weigh down prices even more.
E.ON Ruhrgas itself promotes new spot gas markets and exchange contracts for gas and has also responded to demands for separating distribution and transport.
It is in the process of moving 1,200 staff into its new E.ON Gastransport unit and expects to complete the move in August 2010.
Ruhrgas in the first nine months of 2009 saw its gas sales fall by 15 percent year-on-year to 428 billion kilowatt hours. [ID:nLB139751]
Media reports have said it expected a steep EBIT loss for the full year.
(Reporting by Vera Eckert)
Dow Jones: Keppel Corp Units Get Contracts Worth S$160 Million
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=200912100005dowjonesdjonline000002&title=keppel-corp-units-get-contracts-worth-s160-
SINGAPORE -(Dow Jones)- Singapore-based rig builder Keppel Corp. (BN4.SG) said Thursday its units have secured contracts worth S$160 million, bringing the company's year-to-date order books to a total of S$1.5 billion.
The latest contract is for a floating production storage and offloading vessel conversion, a derrick lay barge completion and the life extension of a semisubmersible rig, Keppel said in a statement.
"As market sentiments liven up, we are receiving more enquiries with some new contracts materialising in the last quarter of this year," Keppel Offshore & Marine Tong's chief executive, Chong Heong, said in a statement.
While it expects to complete the conversion order in the first quarter of 2011, it is likely to finish the barge order by the second quarter of 2010.
Work on the rig is expected to start in the first quarter of 2010 and will be delivered to Libya for Russia's Gazprom in the second quarter of next year, Keppel said.
"The above contracts are not expected to have material impact on the net tangible assets and earnings per share of Keppel Corporation for the financial year ending 2009," it said.
-By P.R. Venkat, Dow Jones Newswires; +65 64154 152; venkat.pr@dowjones.com
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